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Volume 10 Issue 7   |   July 2009   |    www.superfactory.com

From the Editor

Welcome to the Superfactory Newsletter!

Now is the time to invest in lean improvements. Check out Gemba Academy, including the four free online video modules on Introduction to Lean, The Ten Commandments of Continuous Improvement, VSM Overview, and 5S Overview. A nine module series on The Seven Deadly Wastes has just been added to the School of Lean.

We continue to develop our ".am" series of morning aggregated news websites. There are now a total of nine, including CEO.am for general business news, lean.am for lean news, and manufacturing.am for manufacturing news.

The Superfactory LinkedIn group has nearly 3,000 members. If you're a member of LinkedIn, or are interested in joining the largest professional social networking group, also join theSuperfactory Group. You can also follow us on Twitter!

- Kevin Meyer

 

Manufacturing Excellence News

Stories of interest to the lean community.

 

In the Evolving Excellence Blog

Join over 5,000 readers who get their daily dose of blunt manufacturing and business reality by subscribing to the Evolving Excellence blog!

  |  Subscribe to Evolving Excellence by Email

Recent posts in the Evolving Excellence blog include:

Visit the Evolving Excellence blog...

 

Upcoming Events

07/15/2009Motivating Others While Leading Change - Mason, OH - Definity
07/16/2009Principles of Lean Manufacturing - Morris Plains, NJ - NJ MEP
07/20/2009Six Sigma Executive Champion - Dayton, OH - U-Dayton
07/22/2009PLC Training Workshop - Atlanta, GA - Business Industrial Network
07/22/2009Value Stream Mapping for Healthcare - Cambridge, MA - LEI
07/22/2009PLC Training Workshop - St. Louis, MO - Business Industrial Network
07/23/2009Principles of Lean Manufacturing - Morris Plains, NJ - NJ MEP
07/23/2009Acquiring External Technology to Drive Innovation - Pasadena, CA - CalTech
07/27/2009ControlLogix PLC Training Seminar - Atlanta, GA - Business Industrial Network
07/28/2009Sustainable Lean Culture - Cambridge, MA - LEI
08/03/2009Six Sigma Yellow Belt - Dayton, OH - U-Dayton
08/03/2009Green Tech Connect Forum - Pasadena, CA - AQMD
08/03/2009Lean Experience - Novi, MI - Lean Learning Center
08/17/2009Lean Certification - Mason, OH - Definity
08/18/2009Successful Acquisition Integration - Pasadena, CA - CalTech
08/20/2009Principles of Lean Food Production - Morris Plains, NJ - NJ MEP
08/20/2009SMART Leadership - Columbus, OH - Definity
08/24/2009Six Sigma Green Belt - Dayton, OH - U-Dayton
08/25/2009Lean Change Agent Symposium - Cambridge, MA - LEI
08/26/2009Lean Simulation - Cincinnati, OH - Definity
08/26/2009Intro to 5S - Webinar - 5S Supply
08/27/2009Lean Tools for the Office - Morris Plains, NJ - NJ MEP

View the full events calendar...

 

Featured Book

Follow the LearnerFollow the Learner

By Sami Bahri

'What does it really mean to be a learning organization? What does it take to get the people in a nonmanufacturing environment to think of work in terms of flow? How do you build a culture based on lean principles and lead that culture as it continuously evolves? Dr. Sami Bahri describes how he and the staff in his dental practice tackled each of these questions. The book describes how their organization transformed their work and their thinking from a traditional batch approach to one focused directly on the needs of the patient, not on the needs of the practitioners. It explains the technical changes that they made in the way that they scheduled and treated patients, as well as the understanding of the human interactions needed to make this new model succeed.

More information - Previous featured books

 

Featured Article

  Who Teaches the Teachers?

  By Michael Ballé, Excellence Systems Group
 

I was recently walking through a factory shop floor that was essentially a machining shop (20-odd mills, drills and turns of varying age and design) with one small assembly cell stuck at the end of the hall. In this cell, the local lean team had worked very hard at implementing all the lean tools and improved quality, productivity and eliminated WIP by going to single piece flow. They were still struggling with regular supply in small containers, for the usual organizational issues with logistics. This was not bad at all, considering the general panic about 20% lower volumes than at this point last year. They’d managed to reduce headcount faster than falling demand, and to do so without traumatizing the operators, who had participated actively to the “lean implementation.”

This, right in the middle of a tool shop with mostly idle machines, visibly disgruntled operators, crates of semi-worked parts, half dismembered machines in the midst of equally half-hearted maintenance – the very image of the bad old days of factory life. Here, I thought, I could see the very source of our difficulties with learning lean. What the lean team had done was perfectly right, and also, probably equally useless for the company. It was doing the right thing at the wrong place, and in the wrong way. How do you get out of that hole?

For several years, I’ve wondered about the slow rate at lean implementation. Recently, while discussing this topic with a genuine lean hero, Orry Fiume of Wiremold fame and author of Lean Accounting, we even wondered whether lean can be taught at all – coming from two experienced lean instructors, this is pretty scary. In general, such conversations are all about the fact that so few managers are really into doing lean for real – lacking both the motivation and the persistence to go all the way. But what about us instructors? What about the gurus and the consultants? What is our share in the difficulties with the lean transformation. Maybe we’re just teaching this stuff wrong?

Read the entire article...

 

Featured Evolving Excellence Blog Post

Boeing's About Face Runs Smack into Traditional Accounting
by Kevin Meyer

Just the other day I told you how Boeing has apparently learned a lesson and is making an about-face on its outsourcing strategy by buying the assembly operations of a key supplier, Vought. Well yesterday the deal happened, and the writeup in the Wall Street Journal itself explains why companies continue to go down the path to outsourcing hell.

Boeing Co. agreed to acquire manufacturing operations from one of its key suppliers on the delayed 787 Dreamliner aircraft at a cost of $1 billion. The purchase of a plant in North Charleston, S.C., from Vought Aircraft Industries would mark the second time Boeing has taken over a key part of the Dreamliner's supply chain. Boeing is paying $580 million in cash and will forgive $422 million in cash advances paid to privately held Vought for work on the 787.

The move gives Boeing additional control over a sprawling global supply chain that has created numerous problems for the 787, leading to delays in testing and production. Those delays have cost Chicago-based Boeing millions of dollars in penalties and concessions and have damaged the companies credibility with customers.

Let's repeat some of those negatives, as they'll soon provide the 2x4 we'll use to smack some people upside the head. Cash costs, sprawling supply chain, delays, penalties, concessions, damaged credibility. Pretty expensive, eh? Since it's almost always overlooked, we'll also tack on the human cost of tens of thousands of years of experience, knowledge, and creativity that Boeing shed as part of their outsourcing adventure.

But some people just don't see that. In the same article a whiz-bang analyst at Credit Suisse had a slightly different perspective...

Read the second half and comment (11 comments so far)...

 

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